Like kids sneaking cookie dough, we couldn’t resist REMODELING’s sneak peak at the not-quite-ready 2017 Cost vs Value report. To be sure, REMODELING has issued this news, so it’s legit. We’re just repeating it. Why? Because it’s good. You know, like cookie dough.
What the report shows is the average price for 27 of the most common professionally done remodeling projects has risen 3.1% since the 2016 report was gathered. Notably, this stat exceeds the general rise in inflation, wholesale price index and labor costs. Further, the price increase falls right in line with economic gains revealed in two other oft-cited reports: Metrostudy’s Residential Remodeling Index (RRI) and Harvard’s Joint Center for Housing Studies’ Leading Indicator of Remodeling Activity (LIRA). The RRI, for instance, predicts the total number of remodeling project worth a minimum of $1,000 will rise almost 10% between 2016 and 2019. LIRA points to year-over-year spending gains of about 8%. This is all good news for pros who actually want to make money on their projects.
While you can read the preview of the 2017 Cost vs Value report here, we found the following upticks particularly noteworthy for those of you in the kitchen and bath industry: the cost of mid-range bath remodels are up 3.7% to $18,572, upscale bath remodel costs are up 4.6% to $60,030, minor kitchen remodels are up 3.6% to $20,848 and major mid-range kitchen remodels are up 3.7% to $62,214.
What will make the official and final report truly delicious is if it also shows a gain in the payback these projects return to your clients. That news would surely sweeten things for you in the year to come. Regardless, our appetites are whetted for the full Cost vs Value report that will be issued in January. Stay tuned.